International Finance and Open-Economy Macroeconomics

Theory, History, and Policy

International Finance and Open-Economy Macroeconomics provides a complete theoretical, historical, and policy-focused account of the international financial system that covers all of the standard topics, such as foreign exchange markets, balance of payments accounting, macroeconomic policy in an open economy, exchange rate crises, multinational enterprises, and international financial markets. The book uses the 1944 Bretton Woods Conference as a unifying theme to relate the many controversial issue. It is written in a lively manner to bring real world events into the discussion of all of the concepts, topics, and policy issues. There is also emphasis on the history of economic thought in order to explain how economists in different time periods dealt with international financial issues.

Contents:

• Introduction to International Finance:

  • Introduction
  • The Balance of Payments and the Macroeconomy

• The Foreign Exchange Market:

  • The Foreign Exchange Market
  • The Interest Parity Condition
  • Dealing with Exchange Rate Volatility: Hedging Foreign Exchange Exposure
  • The Microstructure of Foreign Exchange Markets

• Open-Economy Macroeconomics:

  • The Mundell–Fleming Open-Economy Model
  • Post-Keynesian Macroeconomics
  • Towards a More General Keynesian Macro Model

• The History of International Financial Policy:

  • Exchange Rate Crises
  • More Exchange Rate Crises
  • The International Gold Standard, 1870–1914
  • The Tumultuous Interwar Period: 1918–1940
  • Bretton Woods to the Present
  • The Euro and the European Union

• International Financial Issues:

  • Foreign Direct Investment and Transnational Corporations
  • International Investment, International Banking, and International Financial Markets
  • The Financialization of Finance
  • Is it Time for a New Bretton Woods Conference?

Readership: Undergraduate and graduate students in international finance and macroeconomics.
Key Features:

• Provides a complete theoretical, historical and policy-focused account of the international financial system
• Covers all of the standard topics in international finance
• Explains how economists in different time periods dealt with international financial issues